Sinopec and Cosco Shipping order three 175,000 cbm LNG carriers at Dalian
Chinese powerhouses Cosco Shipping Energy and Sinopec Kantons Holdings, a subsidiary of China Petroleum & Chemical Corporation (Sinopec), have signed an order for the construction of three 175,000 cbm liquified natural gas carriers with the compatriot shipbuilder Dalian Shipbuilding Industry Co.

Details on the price and construction timelines have not been disclosed.
However, according to Clarksons Shipbrokers, the first two vessels will deliver in the first half of 2027 and the final vessel in the second quarter of 2028. China Classification Society (CCS) said that it would take part in the construction of the LNG carriers and that it would class the ships.
The contract is being announced on the back of Sinopec’s long-term deal with QatarEnergy for the annual supply of four million tons of LNG signed in November 2022.
The 27-year LNG purchase and sale agreement plays a central role in helping meet the ongoing demand for natural gas in the Chinese market as China works to optimize its energy mix as part of its strategy to increase the use of clean energy.
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It is the second long-term LNG purchase and sale agreement signed between Sinopec and QatarEnergy, and the first long-term deal related to Qatar’s North Field Expansion Project, one of the world’s largest natural gas fields. The project aims to increase Qatar’s production of natural gas, including LNG, to meet the growing global demand for cleaner energy sources.
The North Field Expansion Project is a multi-phase initiative that began in the early 2020s and is expected to continue for several years, with various development stages and production increases planned over time.
QatarEnergy, formerly known as Qatar Petroleum, the state-owned energy company responsible for the project, wants to increase LNG production from around 77 million tons per annum (MTPA) to 110 MTPA, making Qatar the world’s largest LNG producer.
Over the recent period, QatarEnergy concluded eight international partnership agreements for the North Field East (NFE) and North Field South (NFS) projects, which are expected to come online in 2026 and 2027, respectively.
NFE and NFS form the wider North Field Expansion project to increase LNG production from the North Field, adding 48 Mtpa to Qatar’s export capacity and bringing it to 126 Mtpa by 2028.
QatarEnergy has also concluded construction contracts and long-term time charter agreements for 60 LNG carriers as part of its historic LNG shipbuilding program in support of both the NFE and NFS expansion projects, with the number expected to grow to almost 100 in the future.
In April 2023, Sinopec signed a definitive partnership agreement with Qatar Energy for the North Field East expansion project, becoming the first Asian shareholder in one of the NFE joint venture companies that own the NFE project.
Pursuant to the agreement, QatarEnergy will transfer to Sinopec a 5% interest in the equivalent of one NFE train with a capacity of 8 mtpa.
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DSIC an emerging player in the LNG carrier construction market
The latest order for three LNG carriers is the first time Sinopec, Cosco Shipping Energy, and DSIC have joined hands on a construction project of this sort and comes on the back of massive strides Dalian Shipbuilding is making in the LNG carrier construction market.
Last August, DSIC signed a contract with Sea Jade Investment Limited, a joint venture consisting of Hong Kong-based shipping company Wah Kwong, China Gas, and China Ship Leasing. This contract entails the construction of up to four LNG carriers, with two firm orders and two optional vessels. These LNG carriers also boast 175,000 cubic meters each in cargo carrying capacity.
Notably, DSIC’s LNG carriers are equipped with dual-fuel low-speed main engines, aligning with global efforts to reduce greenhouse gas emissions in the shipping industry. They are fitted with iCER technology in the propulsion systems to minimize methane emissions.
Building on this momentum, DSIC received another substantial order from China Merchants Energy Shipping (CMES) in May 2023. CMES, a prominent Chinese shipping company, has commissioned the construction of two 175,000 cbm LNG carriers and two Aframax crude oil tankers.
The order builds on a contract signed in December 2022 when CMES ordered two 175,000-cubic-meter LNG carriers. These vessels are expected to be delivered in the second half of 2026 and will feature advanced dual-fuel LNG main engines and energy-saving technologies to meet the latest emission standards in both fuel and gas modes.
The latest ordering spree has brought DSIC’s orderbook to 13 LNG carriers, including the most recent contract.
Dalian Shipbuilding Industry is emerging as a pivotal player in China’s efforts to match South Korea’s shipbuilding capacity in the construction of LNG carriers, especially, at a time of rising demand for natural gas which is considered to be a cleaner energy source when compared to fossil fuels.
The two nations have been competing neck and neck for the construction of LNG carriers over the past few years.
LNG carriers enable the transport of natural gas across long distances, allowing regions with abundant natural gas resources to export it to regions with high demand, even if they are geographically distant. This helps balance global energy markets and ensures a stable supply of natural gas.